Even at Just Over $4000, Bitcoin Still in a Bubble
The price of crypto-currency Bitcoin Friday morning was $4357.63. It had surged to an all-time high of $4500 earlier in the day.
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One of the best-known Bitcoin bears, investor Peter Schiff, is now making his case in even stronger terms for why Bitcoin has advanced ever farther into bubble territory.
He tells CoinDesk:
"There's certainly a lot of bullishness about bitcoin and cryptocurrency, and that's the case with bubbles in general. The psychology of bubbles fuels it. You just become more convinced that it's going to work. And the higher the price goes, the more convinced you become that you're right. But it's not going up because it's going to work. It's going up because of speculation."
There’s reason to be concerned. Schiff correctly predicted the financial crisis of 2008.
Schiff does say bubbles can lead to trading opportunities for investors who aren’t wedded to the long-term viability of the asset.
"People who get in and get out can make money," he said. Unfortunately, that's easier said than done. He added: "Most people never get out. Most people just don't sell, because of the psychology, and what happens to most people is they just keep buying more. So, when it crashes, they don’t just give back the paper profits – they give back real money."
- Aaron Goldstein, Gambling911.com
